Shiba Inu: Here’s what 79% correlation with BTC could imply for SHIB traders

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Post its decline below the daily 20 EMA (red), Shiba Inu [SHIB] dived to test its five-month trendline resistance (yellow, dashed). After declining below this level, the bears have heightened their influence over the last few days.

The current setup continued to take a bearish tilt, especially after the recent bearish engulfing candlesticks. Any close above or below the trendline resistance could influence the upcoming trend of the dog-themed token. (For brevity, SHIB prices are multiplied by 1,000 from here on).

At press time, SHIB traded at $0.00807, up by 6.07% in the last 24 hours.

Source: TradingView, SHIB/USD

SHIB’s symmetrical triangle-like structure saw an expected breakdown due to the token’s previous downtrend. The fall below the $0.02-level marked an over 63% plunge toward its eight-month low on 13 June.

Over the last month, the alt saw a descending triangle on the daily timeframe. The recent breakdown reaffirmed the bearish strength. As a result, the gap between the south-looking 20 EMA and the 50 EMA (cyan) has been hitting a record high. 

With relatively lower trading volumes, SHIB still stood fragile near the $0.008-zone. Given the current sentiment, a reversal from the immediate trendline resistance could intensify the bearish propensity. In this case, the potential targets stood in the $0.0068-zone.

Should a sudden spike in buying volumes occur, any breach above the trendline resistance could be short-lived by the 20 EMA.

Source: TradingView, SHIB/USD

After testing the 38-mark several times, the RSI took a substantial plunge into the oversold region. From here on, a revival was